Supply Management Processing Investment Fund (SMPIF)
Last Update: July 22, 2025
Canada
Funding for supply-managed sectors facilities improvements
Supply Management Processing Investment Fund (SMPIF) at a glance
Eligible Funding
- Up to 75% of project cost
Timeline
- Open Date : March 8, 2023
Financing Type
Grant and Funding
Eligible Industries
- Manufacturing
Grant Providers
- Agriculture and Agri-Food Canada (AAFC)
- Government of Canada
Status
Open
Overview of the Supply Management Processing Investment Fund (SMPIF) program
The Supply Management Processing Investment Fund offers up to $10 million for dairy processors and up to $5 million for other eligible processors, supporting productivity and efficiency improvements through the acquisition of automated equipment and technology. The program targets investments in dairy, poultry, and egg processing facilities to enhance competitiveness in response to evolving market conditions.
Financing terms and conditions
- Non-repayable contributions up to $10 million for dairy processors and up to $5 million for other eligible applicants.
- Cost-sharing: 50% government contribution for SMEs (0-499 employees), 25% for large enterprises (500+ employees); applicant covers the remaining portion in cash.
- Total Canadian government funding (federal, provincial, municipal) cannot exceed 75% of eligible project costs.
- An additional 10% on the cost-share ratio may be provided if the majority of the business is owned or led by under-represented groups.
- Eligible costs are reimbursed only after being incurred and paid by the applicant; retroactive costs may be considered from the date a complete application is received.
Eligible projects & activities
- Investments that increase automation in dairy, poultry, and egg processing facilities.
- Implementation of new technologies or equipment to improve productivity and efficiency in processing operations.
- Projects that enhance environmental sustainability, such as reducing water or energy consumption or improving waste water treatment in processing plants.
- Initiatives responding to consumer demand for improved food safety and animal welfare, such as installing advanced packaging or processing equipment.
- Expansion or modernization of dairy processing facilities to support increased competitiveness and operational capacity.
Examples of admissible projects:
$ 2,030,000
Automated poultry packaging system implementation
$ 1,750,000
Automating dairy milk bottling process at our facility
$ 3,000,000
Enhancing poultry processing productivity by installing new automated deboning machines
$ 2,200,000
Upgrading egg processing technology to boost efficiency
$ 1,260,000
Implementing cutting-edge robotic technology for cheese production
$ 2,450,000
Installing new automated yogurt production lines
Eligibility criteria of the Supply Management Processing Investment Fund (SMPIF) program
- The applicant must be a for-profit organization (corporation or cooperative) operating in Canada.
- The company must process supply-managed commodities (dairy, poultry, or eggs) at the project location.
- The company must hold an active federal or provincial processing licence.
- The applicant must provide financial statements showing ongoing processing revenues for at least 2 years before applying.
- The organization must be a federally or provincially registered legal entity able to enter into binding agreements.
Who is eligible?
- Dairy processors
- Poultry primary processors (chicken and turkey)
- Poultry further processors (chicken and turkey)
- Hatcheries (broiler, egg-type or turkey)
- Egg graders and egg processors
Who is not eligible
The Supply Management Processing Investment Fund specifies certain exclusions for eligibility, focusing on the nature and status of the business entities. These exclusions ensure that the targeted funds support specific sectors of strategic interest.
- Individuals or sole proprietorships.
- Government entities at provincial, territorial, or municipal levels.
- Not-for-profit organizations operating solely for social welfare, civic improvement, pleasure, or recreational purposes.
Eligible expenses
- Purchase and installation of new machinery, equipment and related systems (including software) necessary for the project.
- Contracted professional or specialized services for installation of machinery and equipment.
- Costs for modification of the processing facility required for equipment installation.
- Construction, expansion, or modernization costs applicable to dairy facilities only.
- Shipping or transportation costs for equipment and/or technology directly related to the project.
Eligible geographic areas
- Organizations operating in Canada.
Eligibility criteria of the Supply Management Processing Investment Fund (SMPIF) program
- Demonstration of issues and challenges affecting productivity and competitiveness, and how the proposed project will address them.
- Evidence that the project will generate a gain in productivity and/or efficiency.
- Financial viability of the organization and potential to generate and/or increase revenues.
- Realistic and sound financing plan for the project's implementation.
- Technical, managerial, and operational capacity to successfully execute the project.
How to apply to the Supply Management Processing Investment Fund (SMPIF) program
1
Project Summary Form Submission
- Read the Applicant Guide for detailed instructions and eligibility criteria.
- Complete the Project Summary Form to determine project eligibility and alignment with program criteria.
- Email the completed Project Summary Form to aafc.smpif-fitpgo.aac@agr.gc.ca.
- If assistance is needed, contact the program for help.
2
Full Application Submission (if invited)
- After submitting the Project Summary Form, wait to be contacted by a program officer.
- If invited, complete the Project Application package including forms and required documentation.
- Submit the full application and all supporting documents as instructed.
- If the application is incomplete, you will have 30 business days to provide missing information.
3
Acknowledgment and Assessment
- Receive acknowledgment notice confirming the application has been received.
- The program will verify that all required documents have been provided.
- Complete applications will be assessed within 100 business days for approval or rejection.
Additional information
- Quebec-based organizations may need to demonstrate compliance with the M-30 Act during project assessment.
- Intellectual property created as a result of funded activities will belong to the recipient or a third party, as negotiated.
- Recipients must submit annual performance reports for at least two years after project completion.
- Failure to provide missing application information within 30 business days will result in the application being closed.
Contact Agriculture and Agri-Food Canada (AAFC)
aafc.smpif-fitpgo.aac@agr.gc.ca
1-877-246-4682
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